Quarterly Report: 2009, October - December (Q2), Nightmute

Community:
Nightmute 
Staff:
Hazel Keezer  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Nightmute 
Population:
244  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/13/2009 
Community Sanitation Overview:
The City of Nightmute provides a small water facility, which is the central watering point for residents to haul their own water. The City also provides water and sewer haul service. The city utility system has 42 residential units and 15 commercial units. The school has its own sewage lagoon. A washeteria is not available. The Nightmute power plant was acquired by AVEC in March 1998. Electricity is provided by AVEC. 
RUBA Status & Activities This Qtr:
RUBA staff traveled to the city of Nightmute in this quarter to conduct a RUBA management assessment. RUBA staff also provided assistance to the city in developing a business license application for the city. The city imposes a local sales tax and wanted to have on record of what business and or services are provided in their community. RUBA had made contact earlier in the quarter to monitor the fuel delivery and supply. The city was able to place their order in advance and provide for the community needs for gas and heating fuel.  
RUBA Activities for the Coming Qtr:
Scores:
 
Essential Indicators:
15 of 27
Sustainable Indicators:
15 of 27
Total Score:
30 of 54

Finances

Essential Indicators
Answer Question
No All revenues and expenses for the utility are listed in the utility budget.
No The utility has adopted a balanced realistic budget.
No Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
No The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
No The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
No The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
No YTD revenues are at a level equal to or above those budgeted.
No YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The budget for FY09 that was approved by the city council was incorrectly prepared. The budget did not have the FY 08 actual revenues and expenditures and projected FY 09 revenues and expenditures. The budget that was presented to the council was the citys monthly financial reports. The city is current on paying all electric bills to Alaska Village Electric Cooperative. The fuel purchase of 25,000 gallons unleaded gasoline had been made and 25,000 gallons of number 2 heating fuel for the winter supply order. The number 2 heating fuel that was ordered is a grade that can only be used at above zero degree temperatures. The city had to make a purchase of an additional 3,100 gallons of number 1 heating fuel. It is unknown at this time if the supply will be adequate to run the utilities. Sales of the number 2 fuel to the community cease during subzero temperatures. The managers report is given verbally to the council when items on the agenda are addressed at the monthly council.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
No Monthly bank reconciliations have been completed for all utility accounts.
No The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.
Accounting Systems Comments
The city collection policy is in their Utility Service Agreement. The grace period is 30 days for past due utility bills. The city will not provided services when the customers balance is over $100.00. The city uses an invoice that has what type of water\sewer service was provided, date of service, amount owed and what was previous owed. The city continues to use the NEBS system accounts receivable and payable. The city correctly calculates payroll and keeps records. The city is compliant in filing for the 941 Federal taxes.

Tax Problems

Essential Indicators
Answer Question
No The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
No The utility is current on making tax deposits.
No If there are any past due tax liabilities or recorded tax liens, a lien release has been issued or a repayment agreement has been signed and repayments are current.
Tax Problems Comments
The IRS deemed the taxpayer in compliance with federal employment tax filings, reports and deposits. The Alaska Department of Labor reported that the City is current with state ESC tax requirements.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes The utility has adequate written job descriptions for all positions.
No The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
Yes The utility has an adequate written hiring process.
Yes The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
Yes The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The City of Nightmute has posted the workers compensation and is covered through 7/1/2008 to 7/1/2009. The city has adopted and uses a personnel policy that was provided by DCCED and contains appropriate topics and language. The council hires new employees and a condition of hire form is provided. The city has personnel folders on employees that contain complete I-9 forms. Three months is the standard probationary period for permanent employees. The administrator provides on the job training for new employees and other training is given if funding is available.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
No The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
Yes The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The City of Nightmute is known to manage the utility. The city council meets regularly once a month. The city administrator held a previous position as a tribal government administrator. The bookkeeper has been employed by the city since January of 2008 and receives on the job training from the administrator and the gaming bookkeeper.

Operation of Utility

Essential Indicators
Answer Question
No The utility operator(s) are actively working towards necessary certification.
No The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes The manager receives a monthly O&M report from the utility operator and routinely "spot checks" the facilities to see that the maintenance items are being completed.
No The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
No The utility has completed and distributed its "Consumer Confidence Report".
No The utility is not on the "Significant Non-Complier" (SNC) list.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
DEC, Drinking Water Program has no record of a current CCR for Nightmutes public water system. The utilitys water system is on the significant non-compliance list for a missed monthly bacti sampling on 9/08. A search on the Certified Operator Database for the city and under current operator resulted that there are no known operators holding certification for the operation of the utility. It is unknown if the operator is actively working towards certification.